Agents of Change: Sustainability and Industry Trade Associations -- An Evolving Value Proposition

Abstract

This work looks at the role of industry trade associations in the sustainability arena and probes the questions around how far these organizations have come along a business and society trajectory. Five industry associations, composed of global companies worth over $4.3 trillion incorporate membership revenues, form the basis of the case study, including: CEFIC, IFA, CGF, IFPMA, Crop Life. The conclusions suggest that as trade associations advance their activities towards sustainability goals, they will not only increase their ability to affect important global policy, they will also increase their value proposition for their member companies. In the past, one would typically not look to industry trade associations as having a hand in helping tackle some of society’s big problems. In fact, many trade associations had rather bleak track records when it came to advancing sustainability. Interviews and insights show a new energy and new investment of industry groups in addressing some of society’s greatest challenges. We see 'coalitions of the willing' converge around common goals and increasingly becoming instrumental players in key global policy debates. The research captures the activities of trade associations as “force multipliers”, working to: - Facilitate dialogue on global policy to tackle critical problems around, for example, nutrition, health, climate and employment; - Convene best-practice platforms to improve standards and performance; - Collaborate on research to fast-track innovations for new technologies, processes, products, and; - Develop tools and training programs to advance sustainability. Of interest to the corporate membership is how 'visible rivals’ work alongside their competition, as well as customers and suppliers with shared aims around social purpose and environmental stewardship. Interviews and discussions with key stakeholders highlight industry trade associations’ ability to: • attract resources and tackle larger challenges than companies can address on their own; • operate on longer time horizons than companies (driven by quarterly reports) or governments (driven by the daily news cycle); • plan and develop strategic partnerships; • identify essential resources, implement and, increasingly, evaluate programs; • predict megatrends and to shape those trends and, • steer their industry away from reactivity and toward a positive future vision that resonates with governments and the general public.